Every business has a variety of insurance coverages to protect its reputation and its assets. As a property management company, your business is no different. In fact, one of the most critical coverages that you should have is property manager E&O insurance coverage, or errors & omissions coverage.
Property Manager Risks
Property managers who specialize in commercial or residential buildings are vulnerable to lawsuits. As a property manager, you cannot discriminate against your tenants based on religion, sex, ethnicity and violate a tenant’s rights. If a tenant alleges that your company discriminates against him or her, this not only damages your reputation, but you may have to pay a large settlement. Other risks include:
- Alleged loss of rental income
- Failure to perform property inspections
- Wrongful evictions
No matter your industry, there are risks to doing business. As a property manager, you have a lot of risks to take into account.
There are a variety of E&O coverages. You may need policies that cover business mistakes, missed deadlines or accusations of negligence. As the market changes, your risks may also change. You need to have the option to change your coverages based on your risks. E&O coverage can apply to property managers of office buildings, residential homes, shopping centers, apartments and more.
Without E&O insurance, a lawsuit could break your company. You must have adequate coverage.